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flag Israel doubles VAT exemption for personal imports to $150 to lower living costs.

flag Israel has doubled the VAT exemption limit for personal imports from $75 to $150, effective November 27, 2025, Finance Minister Bezalel Smotrich announced. flag The move aims to reduce the cost of living by allowing consumers greater access to affordable imported goods, particularly in clothing and footwear, where a few large companies control about 40% of the market. flag Smotrich cited inflated prices driven by concentrated market power as a key factor in eroding purchasing power, which ranks Israel 22nd out of 38 countries compared to European nations. flag The policy is part of broader government efforts to improve affordability and economic fairness.

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